Ethic Q standards, question, provides, research, management

IAmNeil

The question is from 2010 CFAI mock am session.

An analyst who works on two reports for subject company A and B.

Prior to publication of her reports, she shares her reports on A in its entirety with A's top management, while she only shares part of the report on B that provides factual info with B's management.

The answer says only the first part violates research objectivity standards while I think both actions are clear violations. Any thoughts?

I remembered reading sharing factual info with IB department prior to publication is okay, but sharing of any part of the report with subject company is prohibited.

SFoyil

theCFAway Wrote:
-------------------------------------------------------
> On the ethics 2011 AM mock exam #5 the answer is
> C, compliance with trustee duties is not judged on
> hindsight, but B looks correct too, trustees have
> a duty to delegate.


with Ethics you should expect that Sh1t. arghhhh

They want you to pick the best answer, not just the correct one

Ethics blows

zhaoyp

On the ethics 2011 AM mock exam #5 the answer is C, compliance with trustee duties is not judged on hindsight, but B looks correct too, trustees have a duty to delegate.

iteracom

At the end of those 6 hours on sunday,I shall feel seriously violated.

giants2010

confused2010 Wrote:
-------------------------------------------------------
> You could dissociate from the current assignment
> .dissociation doesn't amount to resignation. you
> could ask to be re assigned on another project.
> Only if you are forced to use misleading or false
> info,should you resign.
>
> practically speaking many of the CFAI codes and
> standards are unrealistic. If you follow CFAI you
> either resign or get fired. So you are a
> effectively a jobless up holder of the code and
> standards.


lmao

I think you are in violation buddy... lol

ap0258

You could dissociate from the current assignment .dissociation doesn't amount to resignation. you could ask to be re assigned on another project. Only if you are forced to use misleading or false info,should you resign.

practically speaking many of the CFAI codes and standards are unrealistic. If you follow CFAI you either resign or get fired. So you are a effectively a jobless up holder of the code and standards.

cv4cfa

Thanks, i found the exact words are: Sharing any section of a research report that might communicate the analyst’s proposed recommendation, rating, or price target is prohibited. So factual info should be okay.

yodacaia

I have a question guys:

Suppose I work for a Hedge Fund. The company does not claim compliance with CFAI standards, and their marketing material shows performance records that is biased (survivorship bias). I have informed the company of my duty to abide by CFAI standards, but the company has no intention of changing the data (i.e. re-incorporating those with bad performances).

What should I do in this case?

Dissociate (i.e. resign). I see CFAI using this word alot assuming people can resign just like that.

Continue to use the material since the company is an HF and they do that anyways but note the fact that I have expressed my disagreement...

Present my own data that is different from my employers...and get fired subsequently as I will be loosing the company valuable business..

What's the ethic ground on this?

OmarAdnan

I'm sure this is okay. I did a quick search of the Ethics reading and there is an example on page 76 (example 1) which touches on this. The example mentions that a report is shared with the subject company prior to release so that they can check it for "factual accuracy". The comment on this example doesn't list the sharing of factual information as a violation.